Posted Jul 21, 2022, 5:09 PMUpdated on Jul 21, 2022 at 8:27 PM
Amazon insists in the health sector. After the failure of Haven, an insurance created with JPMorgan and Berkshire Hathaway, the distribution giant got its hands on One Medical, a network of clinics and medical practices which operates 182 practices in 25 American states. Amount of the operation: 3.9 billion dollars, entirely in cash. “We believe healthcare is high on the list of experiences that need to be reinvented,” said Neil Lindsay, Amazon’s vice president of healthcare services.
The giant could thus develop new services in making appointments or telemedicine. “We see many opportunities, both to improve the quality of the experience and to give people back valuable time in their days,” said Neil Lindsay.
The “Netflix of health”
One Medical, a subsidiary of 1Life Healthcare, operates a network of practitioners on a subscription model. For about $200 a year, he offers services such as making appointments in his network, access to a 24/7 chat with health professionals, or advice on how to identify in the very complex American health system, even to negotiate with his health insurance…
The price of the subscription comes on top of the cost of health insurance and all that is not reimbursed (on average, an American spends $12,500 a year on health costs).
The company had gone public in 2020, having been funded by Google in its early days. And the American press recently reported expressions of interest from several large groups for this singular healthcare operator on the American market, in particular from CVS pharmacies.
“There is a huge opportunity to make the healthcare experience more accessible, more affordable and even enjoyable for patients, healthcare professionals and insurers. We look forward to innovating and expanding access to quality healthcare services together,” said One Medical boss Amir Dan Rubin, who will remain at the helm of the company.
During the pandemic, however, One Medical has been the target of criticism, for charging some patients for access to the Covid vaccine or for allowing others to access it when they were not yet eligible. .
In Amazon’s Top 3
Amazon has been trying to position itself in the health sector for several years. If the Haven project failed, it nevertheless developed health insurance for its own employees, launched its own Amazon Care reservation system, and launched an online pharmacy, following the acquisition of PillPack in 2019. This year, it has extended Amazon Care to partner companies and new markets.
The price paid to get their hands on One Medical is up to Amazon’s ambitions: it is the third most expensive acquisition in the group’s history, behind Whole Foods (13.7 billion dollars) and MGM ($8.45 billion).